Tata-Sia Project May Be Reviewed

Finance minister P Chidambaram, on a trade mission to London, has not ruled out the possibility that the new government could review the controversial Tata-Singapore Airlines project.

We will see if it comes up, Chidambaram said at a press conference without elaborating further.

The finance minister was on a one-day whirlwind mission to sell India to foreign investors and say that economic reforms were on track.

During his tightly-scheduled visit he held high-level consultations with Britain's chancellor of exchequer Gordon Brown and met the chief executives of Britain's top corporations.

Chidambaram painted a glowing picture of India's economic prospects during a luncheon attended by Britain's top corporate bosses and a crowded seminar immediately afterwards.

 

I reassured them that reforms are on course and that this government means business, Chidambaram said.

He called for Britain's support at the WTO negotiations, which are on in Geneva, during his one-hour meeting with Brown.

Later, the finance minister was the chief guest at a high-powered luncheon attended by Britain's top corporate chieftains. The luncheon was also attended by Bank of England governor Eddie George. Others on the guest list included British Telecom chairman Ian Vallance, BA chairman Colin Marshall, British Aerospace chairman Robert Evans, Jardine Group chairman Charles Powell and BOC chairman David John. Chief executives of HSBC, Kleinwort Benson, Prudential Insurance and Cazenove were also present. I reiterated the government's commitment to reform, Chidambaram said.

The finance minister, who was in London on a similar mission nine months ago, said: The questions are getting fewer but more pointed. People are focusing on the nitty-gritty.

Chidambaram also addressed a seminar attended by more than 150 senior bankers and executives from leading British companies. During a 20-minute speech, he outlined India's latest moves to open up the economy. Later, he fielded questions on a spectrum of subjects including the 1997-98 budget and India's progress in infrastructure development, telecommunications and power. He also replied to queries on rupee convertibility.

The finance minister was on his way back after a four-day stay in Germany during which he spoke to businessmen and met top government officials in Bonn, Hamburg and Frankfurt. He also met the federal minister of economics G Rexrodt and held consultations with Friedrich Bohl, adviser of German Chancellor Helmut Kohl.